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Friday, February 16, 2018

What Employers Need to Know About ACA Reporting Requirements 2018


The longevity of the Affordable Care Act (ACA) has likely created a level of uncertainty within your organization over the last year. However, as negotiations continue to unfold employers should be aware that Affordable Care Act reporting obligations are still in effect for the 2017 year-end tax season. All Applicable Large Business Employer and Third Party Administrators must still provide ACA reporting requirements in 2018 for the previous tax year. Any organization that fails to file will face severe ACA filing penalties. This is what employers need to know about ACA reporting requirement in 2018. 


ACA Reporting Requirements 2018


ACA Reporting Deadlines 2018:
Recipient Deadline: Friday, March 2, 2018
Paper Filing Deadline: Wednesday, February 28, 2018
Electronic Filing Deadline: Monday, April 2, 2018



ACA Form 1095-C

All Form 1095 recipient copies must be completed, stamped, and mailed out by March 2, 2018, which is just two weeks away.



This is an extension of the original deadline, as the recipient copies are mailed out by January 31. However, for the 2017 tax year, you will have until March 2, 2018. This extension does not include the deadline for filing 2017 ACA information returns to the IRS.

Employees use the Affordable Care Act Form 1095-C, the Employer-Provided Health Insurance Offer and Coverage Information Returns, to complete their federal and state tax returns.


What are the 2018 ACA reporting Requirements for Form 1095-C?
  • Employee ID Numbers
  • Social Security Number Of Employee and Dependents (Spouses not included)
  • Proof of Minimum Essential Coverage (MEC)


ACA Form 1094-C

ACA Form 1094-C serves as proof that Applicable Large Employers and Third Party Administrators were compliant according to ACA regulations and the Employer Shared Responsibility Mandate. As an ALE or TPA, you are required to reporting information about whether you offered affordable minimum essential health coverage and enrollment to eligible full-time employees.



Still need to file your ACA Forms?! We are here to help! ACAwise is a full-service ACA filing solution helping ALE’s and TPA’s easily file 1095 & 1094 forms online.


Choose the best full-service ACA reporting solution for Applicable Large Employers (ALEs) and Third Party Administrators (TPAs). When you file with ACAwise, you are trusting the most experienced and knowledgeable IRS-authorized software in the industry. Volume-based pricing combined with our US-based ACA experts provide you the best ACA reporting service available. 
Flexible pricing is essential for any business, and we guarantee you are getting the best deal on the market today.


Get a Volume-Based Pricing Proposal Today!




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Thursday, February 15, 2018

2017 Affordable Care Act Reporting Tips For Success


With another year gone the Affordable Care Act (ACA) remains intact meaning another round of reporting is upon us. With thousands of ACA Forms filed, we have learned a thing or two about ACA reporting and compliance. Check out lessons learned about ACA reporting for successful 2017 filing.


2017 Affordable Care Act Reporting Tips For Success



We have boiled down our 2017 Affordable Care Act knowledge into three tips on how to prepare this year's ACA reporting.


Tip 1: Accurate ACA Reporting Data

The success of your ACA reporting depends largely on how accurate your source data is. A seemingly innocent typo in an employee file can sabotage your efforts.

One of the most common reporting errors we have seen is entering Social Security Numbers (SSNs) off by one number. This seems like a simple mistake, but if the number you report does not match in the IRS database, your forms will be flagged as incorrect. This is not only true for your employee but also for their spouses and dependents.

Before submitting your data to our team of ACA experts be sure to review all information for accuracy. The more time you have to cross-check and correct information the greater your chances for successfully filing will be. Our internal system will also check for inaccuracies, and you will be notified immediately to provide the correct information if needed.


Tip 2: Reporting COBRA Health Insurance 

Your ACA reporting will be the same if instead of electing COBRA coverage, the terminated employee enrolls in a retiree health plan. The reporting may vary based on COBRA qualifying events, such as divorce or a reduction in hours. On line 14 of IRS Form 1095-C COBRA coverage offered should not be reported as an offer of coverage. Instead, Code 1H should be entered for the months following termination regardless if the employee elects to accept the coverage. Line 15 and 16 of IRS Form 1095-C the months following termination should be left blank because Code 1H was entered on Line 14. In line 16 enter Code 2A to mark which months the company did not employ the worker.


Tip 3: ACA Reporting Deadlines: Form 1095-C

Although the deadline for providing ACA forms to your employees was extended to March 2nd, there is not much time for human resource professionals and employers to successfully prepare. Businesses that wait until the last moment without ACAwise’s help will struggle to get all the needed information together, and the chance of inaccuracies increase.

The time for action is now! The deadline is coming up fast so to avoid any unwelcomed penalties, contact one of our expert ACA team members today to get started. We are available Monday through Friday 9:00 AM to 6:00 PM EST at (704)954-820 or send us a live chat. We are also available for 24/7 email support at support@ACAwise.com.



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Wednesday, February 14, 2018

The Affordable Care Act Employer Mandate Explained


As a human resources professional, you are well aware of the slew of government reports your business must file in order to stay compliant. Since we have established the Affordable Care Act is here to stay (at least for now), the ACA filing penalties are also here to stay. So what happens if your company does not comply with ACA? Check out what you need to know about the employer mandate.

The Affordable Care Act Employer Mandate Explained


Employers with 50 or more full-time employees are required to provide affordable health insurance that meets a set federal minimum coverage and value.




Important 2017 ACA Deadlines

March 2nd: Provide Forms 1095-B or 1095-C to Full-Time Employees
February 28th: IRS Paper Filing Deadline for Form 1095-B or 1095-C
March 31st: IRS E-filing Deadline for Form 1095-B or 1095-C

The Employers Shared Responsibility provision requires all Applicable Large Employers (ALEs) to either provide affordable health insurance to the majority of their 50 or more full-time employees or pay a per-employee fine. Fines will be used toward a publicly provided system that covers people without private insurance.

“Pay or Play” Penalties

“No Offer” Penalty
Employers did not offer coverage
$2,260 ($188.33 per month) per full-time employee

“Unaffordability” Penalty

  • Coverage offered is deemed unaffordable according to ACA standards
  • $3,390 ($282.50 per month) per full-time employee 

Failure to File/ Inaccurate Filing
  • $260 -$520 per form
  • Cannot exceed $6 million in total

Failure to E-File
  • If your business files 250 or more forms, they are required to e-file
  • $260 per form penalty

How to Avoid Obamacare Mandate Penalties

At ACAwise we are dedicated to helping you file your ACA Forms correctly the first time to avoid any ACA filing penalties! But you are going to need to hurry up and get started today! The deadline for providing Forms 1095-B or 1095-C to Full-Time Employees in March 2nd. There is only so much we can do when time keeps marching on!

If you have any questions about the ACA e-filing process, do not hesitate to give us a call at (704) 954-8420 or send us a live chat during our office hours: Monday through Friday 9:00 AM to 6:00 PM EST. You can also email us at any time at support@ACAwise.com, and we will get back to you as soon as possible!


E-File ACA Today!


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Monday, February 12, 2018

I Received Letter 226J? What Are My Options Now?


The Patient Protection and Affordable Care Act (ACA) is complex. The ACA penalty process being initiated by the IRS is no exception. Employers receiving notifications (Letter 226J) must respond within 30 days to avoid further action by the IRS. The process your business or organization must take to develop your response must be focused and efficient.


I Received Letter 226J? What Are My Options Now?


If you have received ACA penalty notification, you are not alone. Thousands of employers all over the country are receiving IRS Letter 226J for failing to comply with the Affordable Care Act’s shared responsibility provisions in 2015. While reviewing your ACA penalty notification letter use this as a guide for preparing your response.


Review and Plan

IRS Letter 226-J is issued to Applicable Large Employers who were responsible for Employer Shared Responsibility and failed to comply. All ALEs that receive this notification have 30 days to review and respond to the IRS demands payment and takes further action.


Intentionally Not Offering Health Care Coverage

If your organization made the strategic decision not to offer healthcare coverage, this letter and penalties should be an anticipated business expense.


Gather Necessary Information and Data

In 2015 ALEs were required to offer minimum coverage to 70% of all full-time employees (30 or more hours a week). You will need to review the requirements for the year(s) in question and collect all information to respond to the notification.


ACA Filing Assistance

While you are required to interact with the IRS directly, you should reach out to ACAwise for 2017 ACA reporting. Also, if your organization previously filed with ACAwise, we will be able to provide additional help, resources, and information for reviewing the process and determine if any errors were previously made.


Review Previously Filed 1094-C and 1095-C

It might be that case that an employer checked an incorrect box or proved the wrong information. ACAwise walks you through the filing process and will help to review your previously filing 1094-C and 1095-C. We are a full-service ACA reporting and compliance solution, so we ensure the information provided to the IRS is accurate.


Submit IRS Form 14764

ALE’s must agree with the employers shared responsibility payment or disagree with the assessment. To answer notification, Letter 226-J employers must complete and submit Form 14764. Do not submit Forms 1095-C and 10994-C.


Is your business feeling confident about its ability to comply with ACA reporting requirements in 2018? If you are hesitant or wish to speak with an ACA expert on ways ACAwise can help file your ACA Forms confident, contact us and we will be happy to discuss the best way moving forward for your business.








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Thursday, February 8, 2018

What is the Affordable Care Act and How Does it Affect my Business?


The Patient Protection and Affordable Care Act (ACA), unofficially referred to as Obamacare, is a US health reform law that was passed under President Barack Obama’s administration in March of 2010. The goal of the Affordable Care Act (ACA) is to help reduce the number of uninsured individuals in the United States and encourage employers to offer health care benefits. The ACA gives people and their families the opportunity for quality, affordable healthcare coverage.

What is the Affordable Care Act and How Does it Affect my Business?


The Patient Protection and Affordable Care Act

Under the ACA, all employers with 50 or more full-time or full-time equivalent employees in the prior calendar year are considered Applicable Large Employers and must provide 95% of full-time employees with minimum value and affordable healthcare coverage.

Those businesses required to provide healthcare and fail to do so are subject to hefty IRS penalties. If you are unsure about your filing requirements you can add the total number of full-time employees per month and then divide the sum by 12.

For Example:
From January through October an employer has 60 full-time employees per month on the payroll and November through December that number is reduced to 45 per month.

Total: 690

This sum is then divided by 12 to give the employer his average employee count per month.

690/12 = 57.5 employees per month

Because this employer meets the required 50 full-time employees they will need to provide affordable health insurance during the next calendar year.

ACA Filing Deadlines

While a lot is up in the air with the Affordable Care Act employers are still required to file with the IRS and provide recipient copies. For more information about ACA filing deadlines and penalties click the link below.

Guaranteed ACA Reporting and Compliance

There is danger ahead…. ACA penalties are looming in the not so distant future. Severe fines and penalties can cause serious damage to any ALE or TPA. Are you ready to file?

ACAwise has a dedicated team ready to help you navigate through these turbulent times. ACAwise is solely focused on your ACA reporting and compliance by providing an innovative cloud-based system and experienced ACA experts in place to ensure full ACA compliance. Gain peace of mind this ACA filing season!



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Wednesday, February 7, 2018

2018 ACA Deadlines You Need to Know for the 2017 Tax Year


While a lot is up in the air with the Affordable Care Act employers are left asking about their filing responsibilities. While Washington officials continue to debate plans to repeal and replace the ACA, the current rules remain in place for the upcoming 2017 tax year. To address some of the confusion many employers have, check out the 2018 ACA deadlines you need to know for the 2017 tax year.

2018 ACA Deadlines You Need to Know for the 2017 Tax Year




ACA Form 1095-C

Applicable Large Employers (ALEs) and Third Party Administrators (TPAs) are responsible for providing their employees with Form 1095-C by March 2, 2018. These employers are also responsible for filing copies of Form 1095-C with the IRS. Paper filers must be submitted by February 28, 2018, and electronic filers must transmit by April 2nd, 2018.

Employees need the Affordable Care Act Form 1095-C, the Employer-Provided Health Insurance Offer and Coverage Information Returns, to help them complete their tax returns.

What is reported on Form 1095-C?
  • Employee ID Numbers
  • Social Security Number Of Employee and Dependents (Spouses not included)
  • Proof of Minimum Essential Coverage (MEC)


ACA Form 1094-C

Form 1094-C serves as proof that ALEs and TPAs were compliant according to IRS regulation and the Employer Shared Responsibility Mandate. Employers are required to report information about whether you offered the affordable minimum essential health coverage and enrollment to all eligible employees.

Under IRS Code Sections 6055 and 6056 ALEs and TPAs must report coverage and enrollment in regards to the individual mandate on Form 1094-C. Form 1094-C is the transmittal form for Form 1095-C.

Employers filing more than 250 of any type of form must e-file with the IRS (although the IRS highly encourages all employers to e-file all forms submitted). Also, it should be noted that the deadline for paper filing comes one month before the electronic reporting deadline.


Paper Filing Deadline: Wednesday, February 28, 2018
Electronic Filing Deadline: Monday, April 2, 2018



IRS Penalties for Late or Incomplete ACA Forms:

Failure to file accurate Form 1094-C by the deadline will result in a $250 per form penalty, but this amount is capped at $3 million per year. Failure to furnish and file Form 1095-C can result in a $500 per form penalty.

Your ACA Reporting and Compliance Solution

Choose ACAwise to manage and file your company’s ACA reporting and compliance. Getting started is easy, and, with volume-based pricing, you will get the best deal available! Explore all ACAwise has to offer with a free demo. Get to know one of our knowledgeable product managers and learn how we can help you smoothly file your ACA 1094 and 1094 Forms.



Request Demo Today!




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Monday, February 5, 2018

How to E-file Your Businesses ACA Forms


The 2017 ACA Filing deadlines are approaching fast. It’s time to act! We know you are busy, but we wanted to share how to e-file your businesses ACA Forms. All Applicable Large Employers and Third Party Administrators must file their ACA information returns with the IRS as soon as possible to avoid significant IRS penalties.

How to E-file Your Businesses ACA Forms


Step 1:

  • Create or Sign into your ACAWise Account
  • If you don’t have an account “Request a DEMO”

Step 2:

  • Indicate Applicable Large Employer (ALE) or Third-Party Administrator (TPA)
  • Verify Business Information

Step 3:

  • Select Year End Filing to IRS
    • You provide all the necessary information to e-file your ACA Forms: employer/employee data, ACA codes, and other form data
  • or Select Year End Filing to the IRS With Cross Walk
    • Provide employer and employee data then our ACA experts will generate the codes needed to submit your forms

Step 4:

  • Sit Back and Relax
    • Once you have submitted all your information, you get to sit back and relax.
    • We will work to create your forms for your ACA Return.

Step 5:

  • Review Completed ACA Forms
  • Transmit to the IRS

It’s that simple! What are you waiting for? Start e-filing with ACAwise today!


Request Demo Today!




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Friday, February 2, 2018

The State of the Union and the Affordable Care Act


President Trump gave his first State of the Union Address on Tuesday and mention the Obama era Affordable Care Act by stating “the individual mandate is now gone.” However, this does not necessarily mean the end. Now, what do the President’s actions and speech mean for your business? Today we will break down how recent the developments relate to ACA reporting and compliance.


The State of the Union and the Affordable Care Act

Despite the continuous efforts to “repeal and replace” the Affordable Care Act, your business is still required by law to report and file required information returns, Form 1095-C or 1094-C. While the individual mandate is gone, the law’s expansion of Medicaid benefits for the poor and others continue to cover millions of Americans.



Although the President made several repeal attempts in his first year in office, he did not call on lawmakers to get rid of the ACA on Tuesday. With the Individual Mandate gone individual Americans will not face a penalty of they do not buy coverage on public exchanges under the ACA. Penalties associated with not having health insurance has been eliminated as part of the tax cuts legislation passed by the Republican majority Congress.

In reality, the Individual Mandate was a small portion of the Affordable Care Act that has supplied coverage to more than 20 million Americans. The ACA also includes reforms for quality measures for insurance companies, penalties for hospitals failing to provide quality medical care, outpatient benefits, and updated screenings for the elderly under Medicare.


So What Does This Mean For 2017 ACA Reporting?

Even though the Individual Mandate is gone, the penalties and reporting requirements are still in effect. All individuals who did not buy coverage in the previous year will be subject to penalties. Also, it is unlikely that Congress will make any attempt to repeal ACA in the near future as a result of increasingly unpopular opinions.

Applicable Large Employers and Third Party Administrators should already be aware of Notice 2018-06 announced on December 22nd, 2017, that granted an automatic 30-day extension from the original due date of January 31st.

ALE’s and TPA’s now have until March 2nd, 2018 to provide Form 1095-B or Form 1095-C to employees covered by employer's health insurance. The IRS has not extended the due date for filing information returns with the IRS. If you choose to paper file the deadline is February 28th and for electronic filers, the deadline is April 2nd.

It should be noted by the employer that employees may not receive their Forms by the time they are ready to file their individual income tax returns for 2017. But while the information on Forms 1095-B and 1094-C may assist in preparing a return, the forms are not required to file.


2017 ACA Reporting and Compliance Solution

While the road ahead might be rocky ACAwise will continue to provide full-service ACA reporting and compliance. Getting started is easy, and with volume-based pricing, you will get the best deal available! Explore all ACAwise has to offer with a free demo. Get to know one of our knowledgeable product managers and learn how we can help you smoothly file your 1094 and 1095 Forms.




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Wednesday, January 31, 2018

Today is the Day! You Need File IRS Form W-2/1099


Today is the day! You must file IRS Form W-2/1099 to avoid penalties. If you are filing either ACA Forms 1095-B or 1095-C, then you probably need to file W-2 Forms and possibly a 1099 or two. There is no time to lose! If you fail to file here are the penalties your business can expect.



Today is the Day! You Must File IRS Form W-2/1099


IRS W-2 Form

The Protecting Americans from Tax Hikes (PATH) Act that was issued last December included a few new requirements for employers. For example, businesses are now required to file Form W-2 with the Social Security Administration and issue copies to recipients by Jan 31st.

In the past employers had until the end of February for paper filing and the end of March for electronic filing. In addition to the filing deadline, there were changes made to extension requests for Form W-2. IRS Form W-2 is only available for a 30-day extension, and this extension is not automatic.

If an extension is necessary, you must complete and submit a paper copy of Form 8809, The Application for Extension of Time to File Information Returns as soon as possible.


W-2 Form Penalties

Your business will be fined penalties if you fail to file the required employee W-2 Forms by today, fail to include the required information, or paper file when required to e-file.

Penalty amounts are based on the date correct forms are filed, or the correct employee statement is provided to the Social Security Administration (SSA). The penalty for failing to file an accurate information return is separate from failing to submit the correct employee statement.

Failing to file employee W-2 forms by today will result in a $30 penalty per form that is submitted within 30 days following today's date. Filing more than 30 days following the deadline but before Aug. 1st raises the penalty to $60 per form.

Filing after Aug 1st or failing to file corrections will increase the penalty to $100 per form. The maximum penalty for large businesses is $1,500,000. A large business is considered an organization with more than $5 million and government entities.



IRS 1099-MISC Form

Today’s deadline also applies to Form 1099-MISC reporting non-employee compensation for contract workers. You are required to issue recipient copies of Form 1099-MISC to your independent contractors and file with the IRS.



1099-MISC Form Penalties

Failure to file Form 1099-MISC by today results in a $30 penalty per form if submitted within 30 days following today’s date. The maximum penalty is $250,000 per year for large businesses.

Filing more than 30 days following today’s deadline but before Aug. 1st raises the penalty amount to $60 per form. The maximum fine for large businesses is $500,000 per year.

Filing after Aug. 1st or not at all will increase the penalty to $100 per form, with a maximum fine of $1,500,000. If you intentionally disregard filing all together, you will be fined $250 per return with no maximum penalty limitation.



How Can You Avoid Penalties Last Minute?

Our sister product TaxBandits provides quality, US-based customer support at no extra charge! Give us a call at (704)684-4751 or send us a live chat Monday through Friday, 9:00 AM to 6:00 PM EST to talk to a friendly customer support representative. We also provide 24/7 support via email at support@TaxBandits.com.

What are you waiting for?? Today is the deadline for filing IRS Form W-2/1099! It’s not too late to e-file and allow us mail recipient copies for you!!











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Monday, January 29, 2018

Do You Need to File IRS 1099s or W-2s?


If you are filing either ACA Forms 1095-B or 1095-C, then you probably need to file some W-2 Forms and possibly a 1099 or two.

Well, look no further because the software developers that brought you simple and secure ACA e-filing (that’s us!) have been in the e-filing game awhile and already have just what you need to file all your information returns: TaxBandits!

You can easily and quickly e-file the following forms with TaxBandits:

  • 1099 Forms
    • 1099-B
    • 1099-DIV
    • 1099-INT
    • 1099-MISC
    • 1099-R
    • 1099-S
    • 1099-Correction
    • Form 1096*
  • W-2 Forms
    • W-2 and W-2c Forms
    • W-3 Form Generation*
  • 990 Forms
    • 990-N (e-Postcard)
    • 990-EZ
    • 990
    • 990-PF
    • 1120-POL
  • 94x Series
    • 940
    • 940-PR
    • 940 Schedule R
    • 941
    • 941-PR
    • 941-SS
    • 941 Schedule R
    • 944
  • Extensions
    • 9909
    • 8868

* Transmittal Form 1096 and W-3 are not technically required when e-filing since a digital version is automatically created when transmitting returns to the IRS. However, when you e-filing using TaxBandits, you generate a copy of the transmittal form for your business records.



TaxBandits provides quality, US-based customer support at no extra charge! Give us a call at (704) 684-4751 or send us a live chat Monday through Friday, 9:00 AM to 6:00 PM EST to talk to a friendly customer support representative. We also provide 24/7 support via email at support@TaxBandits.com.


So what are you waiting for? The deadline for filing your 1099s and W-2s is Wednesday, January 31st! Check out TaxBandits today!



E-File Today!




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Thursday, January 25, 2018

Five Important ACA Penalty Exemptions You Need to Know


Most individuals must carry qualifying health insurance or pay a substantial penalty for the months they do not. However, if you are eligible for a health coverage exemption, you will not be obligated to pay the penalties. Check out these five important ACA penalty exemptions you need to know.

Five Important ACA Penalty Exemptions You Need to Know

It is important to remember that exemptions are based on several possible circumstances; including hardships, traumatic life events, financial status, and in some groups membership. While you can claim some health coverage exemption on your federal tax return, you might be required to submit an application to the Marketplace.

You are not required to pay the penalty for any month you have minimum health insurance. If you qualify for an exemption, you will not have to pay the penalty fee for the months you were without health coverage.

Types of ACA Exemptions


Income-Related Exemptions

You are not required to file a tax return if your annual salary doesn’t meet the tax filing requirement. This happens when the cheapest insurance plan available that’s offered through your employer or Marketplace is more than 8.16% your household income. You are not required to file a tax return because your annual salary does not meet the tax filing requirement.

Hardship Exemptions

If you experienced significant financial hardship or other circumstance that kept you from purchasing health insurance you may qualify for this exemption. As a result, you will not be obligated to pay any penalty fees.

Examples of qualifying Hardships: Homeless, eviction or foreclosure, domestic violence, the death of a family member, fire, flood, natural disaster, human-caused disaster, extensive medical expenses. For the full list visit healthcare.gov.

Health Coverage-Related Exemptions

You qualify for this exemption if you were only uninsured for two consecutive months during the previous fiscal year, or you lived in a state that did not expand its Medicaid program, and household income is below the federal poverty level.

Group Membership Exemptions

To qualify for this exemption you must be a member of a federally recognized tribe, you are eligible for services through an Indian Health Service provider, or you are a member of a federally recognized health care sharing religious ministry. This exemption requires an application. For more information concerning the Religious Exemption visit healthcare.gov.

Other Exemptions

You are exempt if you are incarcerated or served a term in prison or jail. Or you are a U.S. citizen living abroad or non-citizen living here in the US unlawfully. For further information and the definition of “lawfully present” visit healthcare.gov.

Understanding Your Employees Situation

Share this with your clients today to help educate them on ACA exemptions. Your job is to help them with their coverage; our job is to help you with your ACA reporting and compliance. Applicable Large Employers and Third Party Administrators can trust ACAwise with volume-based pricing and full-service features ensuring you get the best deal available!






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Tuesday, January 23, 2018

What You Need to Know About ACA Filing Penalties


The goal of the Affordable Care Act (ACA) is to help reduce the number of uninsured individuals in the United States and encourage employer health care benefits. But what happens if your company does not comply with ACA? Here is what you need to know about ACA filing penalties!

What You Need to Know About ACA Filing Penalties


If you are new to the Affordable Care Act, you may have a few questions about filing penalties. So who is required to file ACA Form 1095?





Employers with 50 or more full-time employees are required to provide affordable health insurance that meets a set federal minimum coverage and value.





Important 2017 ACA Deadlines


March 2nd: Provide Forms 1095-B or 1095-C to Full-Time Employees

February 28th: IRS Paper Filing Deadline for Form 1095-B or 1095-C

March 31st: IRS E-filing Deadline for Form 1095-B or 1095-C



2017 ACA Penalties


While the American Health Care Act (AHCA) is yet to pass through the legislature the Affordable Care Act (ACA) is still fully enforced. All Applicable Large Employers and Third Party Administrators are still required to file required ACA 1095 Forms by the deadline.


Failure to File/ Inaccurate Filing

Your business could potentially be penalized $260 -$520 per form if you fail to file a correct information return (1094 or 1095 Form), but this amount can not exceed $6 million in total.


Failure to E-File

If your business paper files 250 or more forms, you are required to e-file. If you fail to do so, then you will incur a $260 per form penalty. 

Failure to Meet 95%

If you do not offer coverage to a minimum of 95% of full-time employees, your business will face a fine of $2,260 ($188.33 per month) per full-time employee.


Failure to Offer Coverage

If your business fails to offer affordable health coverage, you will be fined $3,390 ($282.50 per month) per full-time employee.



Warning: If you intentionally disregard to file these forms at all, the IRS can pull out the big guns and increase your pre-statement and total penalties for your missing return.


ACA Filing Problems Solved!


At ACAwise we are dedicated to helping you file your ACA Forms correctly the first time to avoid any ACA filing penalties! But you are going to need to hurry up and get started today! There is only so much we can do when time keeps marching on!

If you have any questions about the ACA e-filing process, do not hesitate to give us a call at (704) 954-8420 or send us a live chat during our office hours: Monday through Friday 9:00 am to 6:00 pm EST. You can also email us at any time support@ACAwise.com, and we will get back to you as soon as possible!
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Friday, January 19, 2018

What is the Impact of the Affordable Care Act on Part-Time Employees

The Patient Protection and Affordable Care Act (PPACA) has affected employers who employ part-time employees in several ways. The most significant impact is ACA’s definition of full-time employment. What is the impact of the Affordable Care Act on part-time employees?


What is the Impact of the Affordable Care Act on Part-Time Employees


The PPACA considers employees working 30 hours or more full-time, however, traditionally employers defined part-time as those working less than 40 hours. This new definition has forced employers to revise their schedules or expand health care coverage
 

Affordable Care Act’s Impact on Part-Time Employees


“Under the monthly measurement method, the employer determines if an employee is a full-time employee on a month-by-month basis by looking at whether the employee has at least 130 hours of service for each month.”

- Affordable Care Act

Employers must take into account the number of part-time employers when determining whether they meet the threshold of 50 full-time or full-time equivalents (FTEs). Employers on the border will want to monitor the hours of part-time employees carefully to ensure employees do not affect employers responsibilities. 


Result of PPACA’s Requirements


While the PPACA requires employers to offer health insurance to full-time employees, there are no regulations for part-time individuals. The result is an increase in employers hiring more part-time employees working 29 hours or less per week.

Right now, there are no penalties under ACA for not offering health care coverage despite coverage provided to full-time employees. Employers should weigh the pros and cons of hiring staff more heavily made up of full-time or part-time employees.


Benefits of Full-Time Vs. Part-Time Employees

Take care of your employees, and they will take care of you.


Full-time employees are more likely to develop loyalty, a sense of ownership to a business, and remain with the company longer. This is an important factor to remember when considering the hiring and training costs of bringing on new staff members. They are also more likely to give the employer more control over their time and efforts. 

There are several benefits to hiring a part-time employee. They can be a great asset to small businesses due to their flexibility and relatively low cost.


Patient Protection and Affordable Care Act Filing


If your business is required to file ACA this tax season allow ACAwise and it’s dedicated team members to navigate you through these difficult times. ACAwise is solely focused on your ACA reporting and compliance by providing an innovative cloud-based system and experienced call staff in place to ensure full ACA compliance.


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Thursday, January 18, 2018

Deadlines and Penalties For IRS 1099 Form

As a Human Resources professional, you are well aware of the slew of government reports your business must file. Starting this tax season you will need to file some forms sooner. The IRS deadline for filing Form 1099-MISC is January 31st. Which means you can’t wait to get this done. There is no time to lose deadline and penalties for IRS Form 1099s.

Form 1099-MISC 2018 Deadline: January 31st
1099 Form Variations Deadline: February 28th (Paper)/ April 2nd (Electronic)



Deadlines and Penalties For IRS 1099 Forms

What Penalties Could My Company Face?

A penalty will be enforced if the filer fails to file the required 1099 series forms by the deadline, fails to include all required information, if the return contains incorrect information, or if the filer files on paper when required to e-file.

Penalty amounts are based on the date that the correct form is filed on or the correct payee statement is provided. The penalty for failing to file an accurate return is separate from failing to submit the correct payee statement.

Failure to File IRS 1099 Series Forms

Failure to file 1099 forms by the deadline results in a $50 penalty per form if submitted within 30 days following the due date. The maximum penalty is $532,000 per year or $186,000 for small businesses.

Filing more than 30 days after the deadline but before August 1st raises the penalty to $100 per form, with a maximum fine of $1,596,500 per year or $532,000 for small businesses.

Filing 1099 Forms after August 1st or failing to file corrections will increase the penalty to $260 per form, with a maximum fine of $3,193,000 per year or $1,064,000 for small businesses.

How to Avoid Form 1099 Penalties and Interest

Now that you understand the penalties and what they entail, I am sure you will avoid having to pay them. 1099 series of information returns reporting income from self-employment, interest and dividend, or independent contractors to the IRS are due by January 31st.

To avoid penalties use our sister product, Tax Bandits to e-file and pay any owed taxes on time with our quick, easy and secure step-by-step filing process. We provide filers built-in error checks, bulk upload data and experienced US-based customer support.


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Wednesday, January 17, 2018

Seven Important ACA Question You Need To Ask Yourself

Are you ready to file your Affordable Care Act (ACA) forms? If any Applicable Large Employers or Third Party Administrators fail to meet their obligations for offering health coverage to all full-time employees under Section 4980H, they will be liable for Employer Shared Responsibility penalties. Here are seven important ACA questions you need to ask yourself in preparation for filing.

Seven Important ACA Question You Need To Ask Yourself

1. Has your company accurately archived, documented, and tracked all the required data for eligibility?
  • Full-Time/Part-Time benefits eligibility (30 hours/week -- 130 hours/month).
  • Individuals that accepted and declined coverage.
  • 95% or more of full-time employees offered affordable coverage.

2. Do you have waivers or declination forms for those who declined the sponsored plan?


3. Do premium contributions for the least expensive plan satisfy the 9.66% affordability threshold?

  • Are you using the correct Affordability Safe Harbor Method?
  • Could you use a different Safe Harbor method to provide greater control over your company's health care costs?
  • What is the least expensive plan for each employee?

4. Have you reviewed the health plan contracts for eligibility limitations?
  • Will your company continue to insurance those who have moved from full-time to part-time status?

5. Are you prepared to file correct 1095/1094 Form information by the statutory deadline for each year?
  • ACAWise is a full-service ACA Form solution for Forms 1094/1095.

6. Are you prepared to file the Employee Coverage Tool (ECT) Forms and reply to any Exchange Inquiries?
  • Which team member is designated to access this information in order to complete and response to Exchange questions? 

7. Do you have proper documentation prepared for any future IRS inquiries?

Eliminate Penalties with Proper Planning

There is danger ahead…. ACA penalties are looming in the not so distant future. Severe fines and penalties can cause serious damage to any ALE or TPA. Are you ready for filing season?
ACAwise has dedicated team members ready to help you navigate through these turbulent times. ACAwise is solely focused on your ACA reporting and compliance by providing an innovative cloud-based system and experienced call staff in place to ensure full ACA compliance. Gain peace of mind this ACA filing season!


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Monday, January 15, 2018

What is the Individual Shared Responsibility Provision?

As you know, the Affordable Care Act (ACA) prohibits health insurers from denying individuals coverage based on pre-existing conditions or family histories. However, this was a major concern for lawmakers and insurers because they feared taxpayers would wait until they got sick to purchase health insurance. However, to stay in business, they must collect more money than they pay out. This is where the individual shared responsibility provision comes in.

What is the Individual Shared Responsibility Provision?



Individual Shared Responsibility

Employers, insurance companies, and individuals are all responsible for keeping health insurance coverage affordable and available. The individual shared responsibility provision is a guideline for the individual's responsibility and role in ACA. It states that individuals must carry health insurance, receive an exemption, or pay a hefty penalty. This penalty is a federal tax referred to as the shared responsibility payment.

Shared Responsibility Payment

If you employees are not covered by minimum essential coverage, they will need to pay the shared responsibility payment. The amount they owe will depend on several factors:

  • Number of uninsured individuals in the household during the previous calendar year.
  • Are the insured children?
  • How long have you and your dependents been uninsured?
  • Total income of your household

Avoid The Shared Responsibility Penalty

Your employees can avoid the shared responsibility penalty by carrying minimum essential coverage. This includes the health care plans provided by your business, health insurance provided by government programs, and health-care exchanges.

2018 Tax Season

As most of you are aware, the individual mandate has been repeal for the upcoming year, but your employees will still need to report coverage for 2017. Help to inform your employees about changes in regulations and what is expected of them this tax season. Remind them that if they did not carry insurance during the previous year they will face substantial penalties.

ACAWise Your Reporting and Compliance Solution

Don't be lulled into a false sense of security. Despite the ongoing efforts to “repeal and replace” the controversial Affordable Care Act, it is still required by law and those who ignore their responsibilities will face severe consequences.

Choose ACAwise to handle your company’s ACA reporting and compliance. Getting started is easy, and, with volume-based pricing, you will get the best deal available! Explore all ACAwise has to offer with a free demo. Get to know one of our knowledgeable product managers and learn how we can help you smoothly file your 1094 and 1095 Forms.


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Friday, January 12, 2018

New 2018 Withholding Tables Released by IRS


Thursday the IRS released Notice 1036 updating the income-tax withholding tables. This is the result of the Tax Cuts and Jobs Act enacted in December. The 2018 withholding tables are just the first in a series of future updates they will improve the accuracy of 2018 withholdings. Here is what your business needs to know about the new 2018 withholding tables released by the IRS.

The IRS Releases New 2018 Withholding Table



Implementation of 2018 Withholding Table

Before implementing the 2018 withholding tables business should continue to use the 2017 guidelines. However, you should switch to the new 2018 withholding tables as soon as possible, but no later than February 15th. 

Future Form W-4 Revisions

Notice 1036 will help to minimize the burden on taxpayers and employers. At this time employees are not required to do anything. But IRS is planning to revise Form W-4 later on this year because this form is ultimately used to determine how much your employee's paychecks are withheld toward income taxes. 

2017 Vs. 2018 Withholding Table

The Tax Cuts and Jobs Act passed last month made several changes to the established tax plan including the repeal of personal exemptions, an increase in standard deductions, and updates in tax rates and brackets.

2018 Withholding Table Details 

  • Employee portion of Social Security: 6.2% with a taxable wage of $128,400
  • Employee portion of Medicare: 1.45% with no wage base limit
  • Medicare Surtax: .9% which exceeds $200,000 or $250,000 for married taxpayers 


Guaranteed Tax Compliance

Comment below with any question for our experienced tax specialists. If your business still needs to file their ACA reporting and compliance forms, use ACAWise as your full-service solution. Provide the information you have on your employees’ insurance coverage and our variable-rate software will take care of the rest. Based on your information we will make sure the right codes are in place before e-filing your ACA Forms


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Wednesday, January 10, 2018

Your Crash Course Guide to IRS 6055 and 6056

While the individual mandate will be going away soon, we are all still required to file those forms this year. To clarify, despite the various changes to the Affordable Care Act (ACA), tax reports due during the 2018 tax season are based on requirements and coverage offers in 2017. Here is your crash course guide to IRS 6055 and 6056.

IRS Code Sections 6055 and 6056 in regards to the individual mandate requires employers to provide minimum essential coverage. Applicable Large Employers (ALEs) and Third Party Administrators (TPAs) must report specific information to the IRS such as coverage provided and the provider. Failure to comply with these reporting rules could cost your business. Here is your crash course guide to IRS 6055 and 6056.

Your Crash Course Guide to IRS 6055 and 6056



What You Need to Know About 6055

Section 6055 is used to determine whether individuals are covered by minimum essential coverage. This section calls for the health plan issuer or insurance company to provide Form 1095-B and Form 1094-B to show the individual's coverage levels. This will also prove the if an individual is fully insured through their employer or if they receive coverage through a spouse or parent.

ACA Forms Associated With Section 6055:
Form 1095-B:IRS information return that must be sent to the covered individual and filed with the IRS.
Form 1094-B:
IRS transmittal Form to be filed with the IRS along with Form 1095-B

What You Need to Know About 6056

Section 6056 applies to Applicable Large Employers (ALEs), which are businesses that employ 50 or more full-time or full-time equivalent employees. According to the ACA all ALEs are required to offer health coverage that meet quality and affordability standards.

Forms associated with section 6056 are used by the IRS to verify whether the employer met requirements and if they need to penalties for employees not offered adequate coverage.

ACA Forms Associated With Section 6056:
Form 1095-C
IRS information return that must be sent to the covered individual and filed with the IRS.
For 1094-C
IRS transmittal Form to be filed with the IRS along with Form 1095-B.

Self-insured employers that are also ALEs can use both sections of Form 1095-C and 1094-C to meet section 6055 and 6056 reporting requirements. 

Where 6055 and 6056 Reporting Gets Complicated

The above forms call for information not routinely captured by Human Resource databases such as dependent information details. Section 6056 requires employee details regarding coverage offered and accepted on a monthly basis, affordability test results, costs sharing structure, and reasons why certain employees were not offered coverage. To add to this complexity 6056 reporting requires specific IRS coverage codes.

What Happens If Your Business Doesn’t Comply

Failure to comply can cost you significant penalties! Here is what ACA penalties your business could face:
  • Failing to file a correct information return with the IRS will result in a penalty of $260 per form, not to exceed $3,193,000 in a calendar year.
  • Failing to provide a correct information return (1095 Form) to the individual for whom the form is reporting information can incur a $260 penalty per form, again not to exceed $3,193,000 per the calendar year.
  • You can also incur a $260 per form penalty if you are required to e-file but submit paper forms instead.

Warning: If you intentionally fail file these forms, the IRS can pull out the big guns and increase your per-statement and total penalties for your missing returns.

We Are Here to Help

If all of these requirements and forms seem overwhelming, use ACAWise as your full-service solution. Simply provide the information you have on your employees’ insurance coverage and our software will take care of the rest. Based on your information we will make sure the right codes are in the place before filing your ACA Forms.



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Monday, January 8, 2018

The Top 5 ACA Compliance Issues You Will See This Year

The future of the ACA is uncertain with the current white house administration
Despite the uncertain future of the Affordable Care Act Applicable Large Employers and Third Party Administrators should continue to finalize their 2018 ACA Forms. As you start to strategize your 2018 benefits programs, it is essential to keep up with new and ongoing compliance obligations necessary to keep your organization ACA compliant. Here are the top 10 ACA compliance issue you will see this year.

Top 5 ACA Compliance Issues You Will See This Year


1. Employer Shared Responsibility

Although the current administration is planning to eliminate or at least alter the Affordable Care Act most reconciliation rules will not allow for the repeal of the employer shared responsibility. The minimum value requirement for 2018 remains unchanged; however, affordability has decreased. An employer can only charge a full-time employee 9.56% of their household income for health insurance compared to 9.69% in 2017.

As you prepare your ACA forms for filing be sure, you will need all employee documents offering coverage and most importantly the consent waivers for that coverage. 

2. Cadillac Tax

All applicable employers should review their risk of the Cadillac tax even though the tax is not scheduled to begin until 2020. Read more about what the Cadillac tax is by clicking here. However, the uncertain American Health Care Act in its current form will delay the implementation of the tax until 2026.

The best way to review your risk of increased tax obligations is by identifying plans and benefit factors. Review your companies flexible spending account, health savings accounts, and health reimbursement arrangements to gain a better understanding of your future obligations. As an ALE or TPA, you should focus on pre-65 retiree plans and other high-cost plans. 

3. Preventative Services

As of January 2018, preventive services are now included as a requirement. These requirements include adult depression screenings, low dose aspirin for at-risk adults, syphilis screenings, and more.

4. Mental Health

Doctor and patient discuss the changes they can expect with ACA health insurance the next yearThis issue remains uncertain since the mental health parity was passed a year before the ACA and has been mostly overshadowed. However, with recent tragedies, this reform issue will not be going anywhere anytime soon. The new compliance deadline for 2018 is unclear but is a significant concern for all business owners. Your business should undergo a limited review and decide if your business requires a more in-depth dive to ensure overall mental and behavioral health.

5. Third Parties

Health plans continue to grow increasingly complicated more businesses are now turning to third parties to comply with ACA rules and regulations. However, employers must continue to monitor their plans. Consider including a protective provision such as anti-assignment and forum selection to limit how long the company is exposed to lawsuits, where you can be sued, and by whom you can be sued.

2018 ACA Filing Season

Unfortunately, we cannot predict the future of the ACA, but we can help your business remain complaint during the upcoming season. ACAwise is an all-in-one ACA reporting software designed to track and monitor your ACA compliance throughout the year. When it is time to e-file we will create Forms 1095 and 1094 on your behalf! Then you just review your forms and securely e-file directly with the IRS. We will even mail your recipients copies from our South Carolina based office the next business day.

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